The measure would have redefined how real property is valued for tax purposes, established maximum tax limits, and eliminated exceptions to the tax limits. It would have required that property valuations cannot increase by more than 2% per year. (The maximum residential property tax is 1/2 of 1% (.5%) of value. For all other real property the maximum property tax is 1% of value.)[1]

Supporters

Prop 13 Arizona, Inc. were the official sponsors of the initiative. Some of the arguments they made in favor of the measure included:[2]

The group's website quoted The Wall Street Journal, that for every $100 increase in your property taxes, it will reduce the value of your home by $1,200.[2]

Arizona has the 4th highest commercial property tax rates in the nation. By reducing the property tax rate to 0.5% for residential and 1% for all other real property it will make the state competitive with other states like California which will draw in new business.

After California passed Prop 13 it kicked off 12 years of unprecedented growth and economic prosperity in their state.

Bond propositions from 2006 led to a dramatic increase in property taxes.[3] Some Phoenix residents have seen property value increase at much as 50 percent, leaving some struggling to pay their taxes.[4]

Opposition

Local government entities objected to Arizona Prop 13 saying it would slash their budget.[6]

Ken Strobeck, executive director of the League of Arizona Cities and Towns said, "We already have constitutional limits on property tax. There are safeguards already built in." He also argued that passing Prop 13 would force tax hikes in other areas.[7]